Turkey’s economy is set to take another knock as authorities increased the price of diesel.
The Energy Oil Gas Supply Stations Employer Union (EPGIS) said in a statement that 7 Kurus price hike in diesel per liter is affected as of Tuesday follows an 11 kurus increase on August 26.
The average price of diesel in Istanbul is expected to go up from 6.31 lira to 6.38 lira in Istanbul, while in the country’s second and third largest cities of Ankara and Izmir the hike will see diesel go up to 6.45 lira.
Fuel prices also increased in June when EPGİS has announced that the diesel price increased 17 kurus per liter and petrol rose by 6 kurus as new fuel prices came into effect on June 19.
Due to the change in the refinery output prices, a weak Turkish currency, high inflation, political tensions with the U.S., petrol prices increased five times in the last two months and diesel prices have doubled in Turkey since January 2015.
Across Turkey, fuel prices will vary slightly in different regions due to competition and transportation factors.
Turkey is a largely oil-dependent country and U.S. sanctions on Iran also cost Turkey heavily as Ankara stopped purchasing Iranian oil as of May as U.S. waivers granted last November to eight buyers expired.
It was not immediately if the price hike had any link to the recent drone attacks on Saudi Arabian petroleum processing facilities that knocked out an estimated five percent of global supply, sending global oil prices soaring by as much as 20 percent or if the price hike had been determined before the drone attack.
Coordinated strikes on state-owned Saudi Aramco oil facilities in Abqaiq and Khurais, among the world’s largest and most important energy production centers, have disrupted about half of the kingdom’s oil capacity, CNN reported. Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday that 5.7 million barrels a day of crude oil and gas production have been affected. Brent crude oil gained almost $12 a barrel reaching up to $71.95 a barrel, before dropping back to $68 a barrel.